With more options than ever, brands and businesses can create highly-customized marketing campaigns regardless of size, scope or industry. Whether the focus pertains to social media marketing, email marketing, search engine marketing or more conventional formats, it is also easier than ever to deploy sophisticated aspects of graphic design, copy and targeting. Even the smallest of businesses can now take advantage of these options.
The sheer availability and “democratization” of marketing solutions has made it more likely that deployed marketing solutions don’t provide good returns on investment. As such, knowing that your marketing efforts are delivering results is crucial to long-term sustainability.
Below, we’ll review a few tips for making sure that your marketing efforts are truly paying off.
The Importance of Marketing Attribution
In broad terms, marketing attribution refers to how brands can assess the return on investment from their marketing campaigns. Marketing attribution can involve many unique methods of verifying and evaluating each campaign’s performance but generally revolves around determining which platforms and channels are responsible for driving traffic, subscriptions, or sales for your brand.
What are some crucial metrics within this broader dynamic to consider?
Ultimately, the number of successful interactions with customers, clients or audiences determines the value of a marketing campaign. As such, conversions are the be-all and end-all measurement for success; this metric assesses how many people followed through and engaged in the desired action.
Whether this is purchasing a product, downloading an e-book, subscribing to a newsletter, or sharing an article, conversions are the goal of marketing campaigns. To gain the most value from each marketing campaign, it is crucial to learn about what drives conversions.
While conversions measure how many people did what you wanted them to do, engagements measure the number of people who interacted in some way with your campaigns or content. The number of engagements can be quite informative when measured against the number of conversions, as this can highlight how effective your overall campaign is in a given situation.
Which is the better outcome, a campaign that gets 100 engagements and 5 conversions, or a campaign that gets 1000 engagements and 40 conversions? From an ROI standpoint, the former is the better campaign (though some marketing campaigns seek to drive larger numbers of conversions at the expense of return on investment).
Return on Investment
Speaking of ROI, it is yet another crucial component in measuring how effective your overall marketing strategies are for a specific campaign (or overall). Calculating ROI is rather easily done – with the number of engagements and the number of conversions, you can easily determine your overall clickthrough and/or conversion rates, but this also helps you determine how much profit has been earned relative to marketing expenditures.
Any successful marketing campaign should have a positive ROI, i.e. more money should be generated from the endeavor than is spent on the campaign. If this isn’t the case, then a review of campaign strategy is highly recommended.
By assessing these simple metrics, most brands can determine whether their campaigns are delivering the results they desire. While measuring comprehensive marketing performance can involve dozens of unique metrics, these specific examples are among the most crucial for most businesses and brands.